Very little debt to repay and plenty of cash on hand, so it is hard to shake.
Metrics · D/E ~36% · Current Ratio 2.35
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 22.3 · P/B 7.1
💡Highly profitable (41% op. margin, 33% ROE) with low debt (~36% D/E). After the rally, its 22.3x P/E (18.6x fwd) isn't cheap for big tech; AI spend is rising.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company filings, TradingView, S&P Global (margins, debt, liquidity, P/B are TTM), as of 2026-07-01
Business Summary · Key Value Metrics
Digital advertising built on its Family of Apps — Facebook, Instagram, WhatsApp, Messenger, and Threads — plus VR/AR (Reality Labs) and AI infrastructure. FY2025 revenue $201.0B and operating income $83.3B (41.4% operating margin). About 98% of revenue comes from advertising.
Current Price
$612.91
+8.81%+$49.62· Close 2026-07-01
Analyst Consensus Target (external reference)
$820.96
Avg. of 69 external analysts · TradingView (analyst consensus, about 69)
P/E (TTM)
22.3x
TTM
Forward P/E
18.6x
Consensus basis
Operating Margin
41.2%
TTM
ROE
32.9%
TTM
Revenue Growth
+26.2%
TTM YoY
Market Cap
$1.56T
As of 2026-07-01
Economic Moat · Key Business Segments
Combined daily active people (DAP) across Facebook, Instagram, WhatsApp, Messenger, and Threads reached about 3.5 billion in Q4 2025 (up 7% YoY), forming the world's largest network effect. Ad revenue was $196.2B in 2025, about 98% of total revenue, and vast first-party user data plus AI recommendation and targeting entrench ad efficiency. Family of Apps operating income was roughly $102.5B in 2025 (source: company IR, Q4 2025 results).
Network Effect
About 3.5 billion daily users across the Family of Apps. The larger the network, the greater the advertising and social value — driving lock-in.
Ad AI and Data
First-party user data plus AI recommendation and targeting. Ad revenue of $196B/yr, about 98% of total revenue.
Economies of Scale
A massive revenue base funds large-scale reinvestment in AI infrastructure and R&D — a barrier to entry.
Multi-Platform
FB, IG, WhatsApp, Messenger, and Threads capture user time across platforms. Threads has about 400 million MAU.
10-Year Financial Trends
Operating income recovered from a 2022 low of $28.9B (24.8% margin) to $69.4B (42.2%) in 2024 and $83.3B (41.4%) in 2025, with a 9-year operating-income CAGR of +23.5%, close to the revenue CAGR (+24.7%). In 2022 net income plunged 41% on an advertising slowdown and iOS policy changes, then rebounded in 2023–24 on ad recovery and cost discipline (the 'year of efficiency'). Reality Labs, however, posted a 2025 operating loss of about $19.2B (roughly $84B cumulative over 2020–2025) (source: SEC EDGAR 10-K, company IR).
9-Year CAGR: Revenue +24.7% · Operating Income +23.5% · Net Income +21.8% · EPS +23.6%
Source: SEC EDGAR (10-K, 8-K), company IR, stockanalysis. Revenue and operating income are on a fiscal-year (December year-end) basis. EPS is diluted (Meta has never split its stock, so no split adjustment is needed). P/E is fiscal year-end price ÷ diluted EPS. ROE is on an average-equity basis, so it differs slightly from the latest TTM figure (32.9%). The 2019 dip in operating margin reflects a one-time FTC settlement (about $5 billion).
Mega-Cap Value Metric Comparison
Among its peers, META's trailing P/E of 22.3 remains lower than GOOGL's despite the recent rally, while its 41.2% operating margin ranks near the top. Revenue growth (+26.2%) is fast among the three ad players. Snap (SNAP) swings between losses and slim profits, leaving a wide gap in scale and profitability (P/E, ROE, margin = TTM; revenue growth = TTM YoY; source: TradingView, company filings).
Metric
★ META
GOOGL
SNAP
P/E (TTM)
22.3
28.8
Loss~breakeven
ROE
32.9%
38.9%
Negative
Operating Margin
41.2%
33.6%
Single digits
Revenue YoY Growth
+26.2%
+22%
+10% range
P/E, ROE, operating margin = TTM; revenue growth = TTM YoY · Source: TradingView, company filings, as of 2026-07-01. SNAP is shown as a range given its large swings between quarterly profits and losses.
Key Risk Factors (from 10-K)
●
Surging AI / Data-Center CapEx— AI infrastructure CapEx is surging to $65B+ per year in 2025–26, pressuring near-term free cash flow (FCF). The lag before monetization is the risk.Source: Company IR, earnings calls
●
Reality Labs Cumulative Losses— The VR/AR segment (Reality Labs) posted an operating loss of about $19.2B in 2025 and roughly $84B cumulatively over 2020–2025. The timing of any turn to profit is uncertain.Source: Company IR, segment filings
●
Ad-Cycle Sensitivity and Policy Changes— About 98% of revenue is advertising, so results can swing sharply with economic slowdowns and platform privacy policy changes (e.g., iOS).Source: Company 10-K Risk Factors
●
Regulation and Antitrust— Ongoing platform regulatory pressure, including the U.S. FTC antitrust suit and the EU Digital Markets Act (DMA).Source: Company 10-K Risk Factors
●
User Demographics and Competition— Younger users may shift to rival platforms like TikTok, and it competes with Google and Amazon in advertising.Source: Company 10-K Risk Factors
✦ ValueCrab Dashboard PreviewMETA $612.91 +8.81% · as of 2026-07-01
Q. What are Meta's (META) key value-investing metrics?P/E (TTM) 22.3 (forward about 18.6), ROE 32.9%, operating margin 41.2%, net margin 32.8%, a 9-year revenue CAGR of +24.7%, and a 9-year operating-income CAGR of +23.5% (source: company IR, SEC, TradingView, as of 2026-07-01).
Q. What is the analyst price-target consensus for Meta?The average target from about 69 analysts is $820.96. This is an external consensus, not our own estimate. That is +33.9% above the current price of $612.91. Source: TradingView, 2026-07.
Q. Is a forward P/E of 18.6x cheap?On the facts alone, the trailing P/E is 22.3x and the forward is about 18.6x; after the recent rally and downward analyst EPS revisions, it is no longer below the big-tech average. Rising AI CapEx and Reality Labs losses could affect future earnings, so we do not offer a definitive judgment.
Q. Is Reality Labs (VR/AR) losing money?Yes. The Reality Labs segment posted an operating loss of about $19.2B in 2025 and roughly $84B cumulatively over 2020–2025. By contrast, the advertising-driven Family of Apps segment earned about $102.5B in operating income in 2025, driving the group's total profit (source: company IR).
Q. Who are Meta's main competitors?In digital advertising, Google (GOOGL) and Amazon; in social and video, TikTok (ByteDance), Snap (SNAP), and YouTube.